Gartner estimates that errors in spreadsheet-based compensation plans can amount to 10% of commission payments.
How much is that costing you?
But lost money isn’t the only casualty. Admins resolve miscalculations, reps complain, and managers discuss it all—wasting time that could be spent on company growth.
Plus, errors can cause your salespeople to distrust their paychecks, which could contribute to higher turnover of your best players. Hiring and training new talent can cost upwards of 200% of the employee’s annual salary (Entrepreneur). And revenue and margins suffer due to the inexperience of new hires.
It’s the perfect storm of unnecessary drains on revenue.
If that’s not enough, spreadsheets provide little visibility for salespeople to determine what is owed to them, so they may resort to shadow accounting—doing their own calculations on the side. And even then, the wait between quarter close and payday can be months.
Frustration does not equal productivity.
About 8% of all sales compensation expenditures are over-payments (MThink). Imagine how your reps would feel if you had to ask for money back.
Outdated sales comp plans are difficult to track, and could end up draining significant resources.
What could you do with all that extra time and revenue?